EEX and GDT finalize JV for European Dairy Auction
30 Jan 2019 --- The European Energy Exchange (EEX) and Global Dairy Trade (GDT) have concluded the initial consultation period for the establishment of a joint venture to operate a European-based auction mechanism for European dairy products.
The initiative between EEX and GDT has received a high level of interest in the market during the evaluation process. To date, EEX and GDT have reportedly met with more than 50 key participants of the dairy value chain, including sellers and buyers across France, Germany, Ireland, the Netherlands, Scandinavia, Switzerland, the UK, as well as buyers from Asia.
Following the completion of the market consultation and initial evaluations with potential IT partners, EEX and GDT will now enter the next phase of the project. This phase which will seek to develop the scope of possible services further, obtain commitments from potential customers, validate commercial viability and agree on a partnership arrangement between EEX and GDT, according to a company announcement.
Final decisions by both partners on the initiative are expected by mid-2019. If positive, the first auction of the new venture is set to take place in 2020.
In September 2017, FoodIngredientsFirst reported that GDT was looking to join forces with the EEX to set up and operate an auction mechanism for dairy products originating in Europe. The two parties signed a Letter of Intent to evaluate the possibility of working together.
EEX develops, operates and connects secure, liquid and transparent markets for energy and commodity products with contracts in power, coal and emission allowances. It also trades freight and agricultural products or registers them for clearing.
EEX’s offering for European dairy products includes financially settled futures in skimmed milk powder, butter and whey powder ingredients.
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